When it comes to buy to let (BTL) finance, there are an array of different products, rates and structures available. Over the years we have dealt with many different BTL scenarios and nurtured some very close relationships with retail banks, private lenders and private banks operating in this area. Our independent status allows us to talk to all lenders with no restrictions. As a consequence, we are able to negotiate bespoke BTL finance which is structured round the individual requirements of our clients.
Lowest LTV BTL rates
As with any financial transaction, buy to let products are based upon the risk/reward ratio therefore the lower the LTV ratio the lower the risk, which is reflected in the headline interest rate. We have been able to negotiate some extremely attractive deals in recent times including the following example.
Headline details:-
Mortgage Type: Interest only
LTV: 75%
Interest Rate Options:-
2 year discount variable @1.69% Lender fee: £1,495
2 year fixed @ 1.68% Lender fee: £1,795
5 year fixed @ 2.28% Lender fee: £1,995
Highest LTV BTL products
Many of our clients approach us with requests for buy to let finance based upon the higher end of the LTV scale. Using a mixture of regular income, security and a solid investment strategy, we have been able to negotiate some very competitive rates.
Headline details:-
Product 1
Mortgage Type: Interest only
Max LTV: 80%
Interest Rate Options:-
2 year discount variable @2.69% Lender fee: 1% of the loan amount
2 year fixed @ 2.99% Lender fee: £1,999
5 year fixed @ 3.39% Lender fee: £1,999
Product 2
Mortgage Type: Interest only
Max LTV: 85%
Lender fee: 1.5%
Interest Rates Options:-
2 year fixed @ 4.59%
5 year fixed @ 5.29%
Best LTD Company BTL
Recent changes to property investment legislation has seen an increase in stamp duty on second homes and a reduction in mortgage interest relief for investments held in a client’s own name. As a consequence, many BTL investors are now switching to limited company structures where it is still possible to offset all mortgage interest charges against income.
Headline details:-
Product 1
Mortgage Type: Interest only
Max LTV: 75%
Interest Rate Options:-
2 year fixed @ 2.69% Lender fee: 1.5% of the loan
5 year fixed @ 3.35% Lender fee: £2,495
Product 2
Mortgage Type: Interest only
Max LTV: 85%
Interest Rate Options:-
2 year fixed @ 4.59% Lender fee: 1.5% of the loan
5 year fixed @ 5.29% Lender fee: 1.5% of the loan
Lending to a trust/foreign national living overseas
Even though the BTL funding market is extremely competitive there are certain areas which some mortgage brokers and lenders tend to avoid. Lending to a trust/ foreign national living overseas are two particular examples of potentially complicated financial landscapes. Due to our independent status, we have no restrictions with regards to the lenders we can talk to and have created some very strong contacts in this particular area. This has allowed us to negotiate some extremely attractive deals such as the following.
Headline details:-
Mortgage Type: Interest only
Max LTV: 65%
Interest Rate Options:-
Tracker @ 2.25% plus 3 month LIBOR
2 year fixed @ 3.30%
5 year fixed @ 3.37%
Large BTL mortgage
As the vast majority of our clients are high net worth individuals, we regularly receive requests for multi-million pound BTL funding. Again, this is an area where our research, contacts and negotiating skills come to the fore. We regularly secure BTL funding up to £10 million although we have managed to exceed this on numerous occasions.
Headline details:-
Mortgage Type: Interest only
Lender Fee: 1%
AUM: None required
LTV options:-
Maximum LTV: 55%
Loan Size: £3M – £5M
Maximum LTV: 50%
Loan Size: £5M – £10M
Interest Rate Options:-
2.49% 2 year fixed
2.74% 5 year fixed
3.29% 10 year fixed
Even though the UK BTL market is a little subdued at the moment, in light of political and economic concerns, there is still significant competition between BTL lenders. As a consequence, we are able to negotiate with traditional banks, private banks and niche lenders to structure funding round a client’s specific circumstances. As you will see above, while private banks/niche lenders prefer to include assets under management arrangements with their bespoke BTL offerings, this is not always the case.
Our ability to present a client’s financial situation and their funding requirements in the best light, utilising multiple income streams and on occasion global assets as security, allows us to negotiate such competitive rates.
